In 2025, artificial intelligence in business software is often associated with headlines about automation replacing people. Stories of AI-driven layoffs stirred anxiety across industries. But behind the noise lies a distinct reality — one where mid-sized and fast-growing companies that embrace AI can operate leaner and compete more effectively.
AI is transforming ERP systems across industries
Artificial intelligence is not confined to consumer apps, LinkedIn-hyped n8n workflows, or even AI customer support agents. It’s becoming a practical part of how corporations automate operations, extract insights from data, and make smarter, faster decisions.
In the modern cloud ERP world, AI is transforming how businesses operate, not by replacing jobs, but by enabling teams to do more of what matters. From streamlining planning to surfacing critical knowledge, AI allows people to make faster, more confident decisions, reducing the time spent on repetitive tasks and increasing their ability to contribute strategically.
And now, this kind of smart support is no longer limited to the biggest players. It’s becoming the new standard for companies of every size.
In the context of enterprise resource planning, AI is driving some of the most significant shifts we’ve seen in decades. From predictive cash flow to intelligent supply chain planning, AI is making ERPs more capable and intuitive. In short, ERP systems are getting smarter — and so are the organizations that use them.
Thanks to cloud deployment models and scalable pricing, ERP systems are now within reach of fast-growing mid-sized companies, including the built-in AI features.
SAP leads the way with embedded AI in Cloud ERP
SAP, a global leader in ERP software, provides a clear view of how AI is transforming the cloud ERP landscape. Three recent developments highlight just how far this technology has come:
- 400+ new scenarios are planned to be added to SAP Business AI by the end of 2025, nearly doubling the current 230+ scenarios available across the SAP portfolio.
- Joule, SAP’s generative AI assistant, is embedded in the SAP S/4HANA Cloud Public and Private Editions, enabling users to query, simulate, and receive actionable insights in natural language directly within the solution’s interface. It’s also available in SAP SuccessFactors and SAP Analytics Cloud.
- The SAP-AWS AI Co-Innovation Program enables companies to co-create custom AI use cases that leverage their own ERP and business data, going beyond standard prebuilt capabilities to address unique operational needs.
These developments mark a turning point: in SAP’s cloud ecosystem, artificial intelligence features are becoming standard, with basic features available by default, and more advanced options offered for those who require them.
What’s new: AI features now built into SAP Cloud ERP
SAP’s embedded AI capabilities span a wide range of functions and business scenarios. Here are a few highlights:
Natural language queries and AI assistants
With features like Just Ask (soon replaced by Joule), users can ask questions in plain language and receive answers instantly.
Joule takes this further, enabling contextual conversations that explain results, provide recommendations, and even uncover underlying causes (e.g., “Why did sales drop last quarter?”).
Predictive analytics (Smart Predict)
Forecasting has traditionally required data scientists. Now, with SAP’s predictive tools, finance and operations teams can:
- Predict late payments
- Identify churn risk
- Forecast revenue or cash flow
- Model marketing ROI or demand trends
All of this is available through templates and auto-trained models.
Scenario simulation (Compass)
Compass, SAP’s new simulation tool, enables users to explore multiple what-if scenarios with just a few clicks. Want to see what happens to margins if raw material prices spike or demand shifts? Compass will generate pessimistic, realistic, and optimistic cases and help estimate probabilities, with no advanced modeling skills needed.
Smart insights and explainability
AI surfaces key trends and clearly shows what’s driving change. Business users are able to immediately identify which factors most significantly influence performance metrics, ranging from profitability to customer retention.
AI-powered planning tools
Teams can simulate plans, test strategies, and publish multiple versions of business forecasts. These instruments use real company data and integrate across finance, HR, and operations, removing the need for disjointed spreadsheets or external tools.
From promise to practice: How embedded AI changes daily work
The power of embedded AI becomes most evident when we examine how it supports informed decision-making across the business. For executives, these instruments are solving real challenges every day:
- CFO: When tariffs are announced, Joule automatically flags impacted products, launches compliance workflows, and updates forecasts. Finance teams don’t spend days gathering data — they get instant, actionable answers.
- Chief Revenue Officer: With predictive forecasts and market data, the CRO identifies risk areas and growth opportunities. Integrated campaign tools help tailor responses in real time.
- COO/Supply Chain Lead: AI planning tools help reallocate inventory and secure logistics proactively when demand changes. Delays and miscommunication are minimized.
- CHRO: AI recognizes skill gaps, succession risks, and hiring needs across the workforce. HR can act on real-time data rather than post-hoc reports.
What ties these scenarios together is simple: each one shows how AI gives teams the clarity and speed to respond in real time, all while working from the same system and data. That kind of synchronization wasn’t possible before. AI brings clarity, speed, and coordination across departments.
Behind the buzz: What companies need to know about limitations of AI in ERP in 2025
While the potential is vast, there are important practical concerns to keep in mind.
Understanding what’s not yet fully available is key to building a realistic AI roadmap. The following list breaks down common constraints and considerations that companies should be aware of before rolling out AI in SAP ERP:
- Not all features are accessible everywhere at the moment: SAP is rolling out new AI tools (such as Joule and scenario simulation) in phases. Some modules, geographies, or cloud editions may lag.
- Select capabilities require high-quality, integrated data and a certain “digital maturity” of your business — AI is most effective where systems (finance, HR, procurement, etc.) are already connected and cleaned up.
- Custom AI use cases (via Joule Studio, etc.) may call for involvement from IT or SAP partners, especially for non-standard business needs. While many tools are built to be used without heavy tech resources, it’s still impossible to implement more complex modules in the absence of support.
- Even SAP’s own materials state: “Joule is still evolving — expect ongoing rollouts, improvements, and not everything is plug-and-play from day one.” This is not exclusive to SAP or other tools and applies to any AI software.
- Some advanced AI features (Joule Studio, custom agents, high-volume analytics) may require additional licensing or are only available in Enterprise editions.
- Features that are free in one module may be paid in another, or have usage limits.
- SAP has not always made pricing transparent up front — companies should clarify expected costs for specific AI use cases before planning a rollout.
Implementation advice
AI adoption in ERP doesn’t call for a big bang approach. For most businesses, the path forward is incremental, and that’s a good thing.
- Start with the built-in features that require minimal configuration (e.g., embedded forecasting, invoice automation, native Joule assistant in S/4HANA Public Cloud).
- Invest early in data quality — most AI-driven value in SAP depends on connected, well-maintained business data.
- Expect phased adoption: many “promised” features are in pilot or staggered rollout, with more coming each quarter (Q2–Q4 2025, per Sapphire announcements).
- Treat SAP’s AI as a lever for continuous improvement, not an overnight transformation. Integration is just the starting point. Companies that build on this foundation continuously see the greatest long-term value. Focus on practical business wins, measure results, and adapt as capabilities mature.
A good implementation partner can be a game changer, especially when it comes to setting up AI features effectively and aligning them with real business goals. At ACBaltica, we’ve been helping companies deploy SAP ERP solutions for over two decades. We’re now supporting clients as they adopt AI-powered tools through implementation of S/4HANA Public Cloud and other products.
AI in ERP is no longer optional or out of reach
AI is changing ERP from a static system into a dynamic platform for decision support. And with solutions like S/4HANA Public Cloud, that shift is now accessible to companies of every size.
AI is a set of tools helping businesses make faster decisions, free up time from repetitive work, and give every team — from finance to operations to HR — more space to focus on strategic growth.
If your company is ready to take the next step, don’t think of AI as a distant, speculative investment. It’s a competitive lever you can activate right now; something your competitors are most likely already doing. Whether you’re optimizing working capital, streamlining demand planning, or adjusting your sales strategy mid-quarter, AI in cloud ERP makes these shifts more precise, scalable, and insight-driven — something traditional methods are rarely able to match under pressure.
Author:
Pavel Ramanouski, Head of SAP BI and EPM practice at ACBaltica
